Your Company’s 2004 contribution margin income statement shows sales of $400,000, variable costs of $300,000, and net income of $40,000.
5.For the year 2005, Your Company anticipates sales of $600,000. Your Company also anticipates that its fixed costs will increase by $10,000 over the 2004 amount. Therefore, 2005 net income (or loss) is projected to be:
a.$210,000
b.$230,000
c.$60,000
d.$80,000
e.none of the above
6.For the year 2005, Your Company anticipates sales of $220,000. Therefore, 2005 net income or loss is projected to be:
a.$140,000
b.$14,667
c.$5,000
d.$198,000
e.none of the above
please explain and this isnt my homework, its just some review problems i need help with. i already have the answers. explanation is most important thanks